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FFIEC Releases Guidance On Remote Deposit Capture TechnologyLast update: 1/14/2009 3:00:00 PM

By Sarah N. Lynch
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The Federal Financial Institutions Examination Council released guidance Wednesday on ways to evaluate and assess the risk of a special technology service that allows people to scan their checks from home to make deposits instead of making a trip to the bank. The technology, known as remote deposit capture, also can be used in ATM machines. According to a release by the FFIEC, the technology is helpful because it can reduce processing costs and allows customers faster access to their funds. But the council also noted that the technology poses new risks. In a report released Wednesday, the council made recommendations to financial institutions and technology-service providers about how to reduce the risks related to remote deposit capture. "A financial institution offering [remote deposit capture] should have sound risk management and mitigation systems in place and should require adequate risk management at customer locations," the report says. "Prior to implementing RDC, and periodically thereafter, management should conduct a risk assessment to identify the related types and levels of risk exposure." The report addresses several key areas of risk management, including risk assessment, legal and compliance risks, operational risks, and mitigating risk. The FFIEC is an interagency body that makes recommendations and offers guidance for the federal examination of financial institutions by the Federal Reserve Board of Governors, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency and the Office of Thrift Supervision. The newly released guidance is available at www.fiec.gov. -By Sarah N. Lynch, Dow Jones Newswires; 202-862-6634; [e-mail] (END) Dow Jones NewswiresJanuary 14, 2009 15:00 ET (20:00 GMT)